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  • Writer's pictureAJ Cheponis

The Cost of Disagreement in Your Organization

Are your team members and leaders working together towards the same strategic goals? Or are they doing their own thing, creating confusion and conflicting goals? Strategic disagreement can impact your organization in many ways and have a significant cost, both financially and emotionally.

The cost of misalignment on your organization's strategy can be high. For example, BMW was estimated to have lost around $10 billion due to disagreement. Even if the cost isn't as steep for your company, research shows that strategic disagreement can still cost you up to 25% of your revenue. It creates confusion, conflicting goals, decreased resources, and frustration among your team members. If not addressed, this disagreement can even lead to sabotaged goals.

It's important to have clarity and agreement around your business strategy to create a talent strategy. According to the 2020 State of Talent Optimization Report, only 37% of companies have a talent strategy. Without a clear business strategy, it's difficult to make important people decisions such as employee development, hiring, company culture, and organization structure.

To identify and measure strategic disagreement, we use simple tools such as the PI Strategy Assessment™. This only takes a few minutes, and it helps to get a better understanding of the degree of agreement among your team.

Once you have the data, you can work on aligning your leaders and improving their confidence in executing the strategy. A combination of technology and experienced facilitation can help you reach agreement on your strategic goals. However, it's also important to map your talent strategy to your business strategy to ensure that people can execute the strategy effectively.

With a clear strategy in place, you'll spend less time on people problems and more time on strategic work. Senior leaders typically spend 61% of their time on people problems, but with a clear strategy, you can focus on achieving results and moving forward.

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